A CHINESE WEEKLY OF NEWS AND VIEWS mmi Vol. 32, No. 1 January 2-8, 1989 Progress and Problems in a Decade's Reform • Shandong Peninsula Strengthens Investment Climate CHINA'SlM OF A GL POLITICAJ A wave in the tide of humanity. by Zhu Suifeng \ BEIJING HIGHLIGHTS OF THE WEEK REVIEW Gandhi's Visit Warms Sino-lndlan Relations VOL. 32 NO. 1 JAN. 2-8,1989 • Indian leader Rajiv Gandhi visited China from De• cember 19-23, 1988 and became the first Indian prime minister to do so in 34 years. His visit was generally CONTENTS considered a genuine starting point for improved rela• tions. Both countries expressed a readiness to solve prob• NOTES FROM THE EDITORS 4 lems that hinder such progress, especially the boundary World Pressed for New one, through peaceful and friendly consultations (p. 5). Political Order EVENTS/TRENDS 5-10 Sino-Indian Relations The World Enters an Era of Relative Detente Usher a New Era 'No'to Taiwan's Elastic • With the relaxing of Soviet-US relations, some diffi• Diplomacy cult problems, including regional conflicts, have shown Reforms Crack 'Iron Rice , signs of political resolution. The superpowers have be• Bowl' gun to shift the focus of their competitive strategies Foreigners Watch Satellite: from arms to comprehensive national strength. As the world is becoming multipolar, the international detente Launching will stay on for a comparatively long period, (p. 11). China's Top 10 News Events in 1988 Xinjiang Railway Under From 1978 to Now, and On Construction INTERNATIONAL • Liu Guoguang, vice-president of the Chinese Acade• Relative Detente Befalls my of Social Sciences, casts a critical eye over the urban the World 11 and rural economic reforms of the last ten years. As he Top 10 world News Events points out, the gains have been enormous. But if they are of 1988 13 to be sustained and continued, then care must be taken A Mideast Peace in selecting the right policies from the various contend• Breakthrough 15 ing proposals now being put forward in Chinese econo• mic circles (p. 18). CHINA Economic Reform: A sweet and Sour Decade 18 Shandong Peninsula (1): A A Headland of Economic Progress Head Land of Economic Progress 25 • Since the Shandong Peninsula was declared an open economic zone in March 1988, its industry and agricul• BUSINESS/TRADE 30-31 ture have concentrated on becoming increasingly export- CULTURE/SCIENCE 32-33 oriented. At the same time, infrastructural construction LETTERS 34 has been accelerated and a series of preferential mea• COVER: For global peace sures drawn up to attract overseas investment and eco• through the coming year. nomic co-operation (P. 25). , Director/Editor-in-Chief: Wang Youfen • PublJstied every Monday by Subscription rates (1 year): Tel; 893363 BEIJING REVIEW Australia ..A.$29.00 TLX: 222374 FLPDACN 24 Baiwanztiuang Road, Beijing 100037 New Zealand NZ.$39.00 FAX:8314318 The People's Republic of China UK .A14.50 Distributed by China International Book General Editorial Office Tel: 8314318 USA US$29.00 '.Tt^ing Corporation (GUOJISHUDIAN) Canada. ..Can.$25.00 English DeptTel: 831,5599 Ext. 546 f, P0%ox 399, Beijing, China FRIOM .mas iiiiDiiBiss World Pressed for New Political Order by Our Guest Commentator Wan Guang he world is faced with a blocs, a tendency towards in• in sight at the end of the long T mission to set up a new dependence has also increased tunnel of regional conflicts. international political or• considerably, and hegemonism This is a period of transi• der based on the Five Princi• and power politics are getting tion, in which new ideas are ples of Peaceful Co-existence nowhere. emerging and old powers are (mutual respect for sovereign• To strive for a sphere of in• resisting. The old and new ty and territorial integrity, fluence, the superpowers have forces are interlocking and mutual non-aggression, non• launched onP' aggressive war conflicting with each other. interference in each other's in• after anothe*, causing enor• Though hegemonism and pow• ternal affairs, equality and mous damage to the various er politics are increasingly un• mutual benefit, and peaceful: fashionable, they are nonethe• co-existence). less still on the historical This new international polit• stage. The international situa• ical order is to be in contrast tion has tended to ease, but with the old one. For centu- the world is still bedevilled iries, international relations Too establish a new by many problems. Many new were dominated by power pol• conflicts and clashes are likely itics in which the large, strong international political to arise, and there might be and rich bully the small, weak order means to eliminate twists and turns in the process and poor. Since the end of of international detente. World War II, tremendous hegemonism and power Peace and development are changes have taken place, yet politics from the urgent needs of human• the old international political kind today. Inter-state rela• order still prevails. international relations tions should be handled pro• The superpowers pursued and implement the Five perly in order to shepherd hegemonism, organized mil• Principles of Peaceful global peace and guarantee itary blocs, engaged in a large- the independence and security scale arms race and contended Co-existence. needed of the world's various worldwide for their sphere of countries so that they may de• influence. Together these led vote themslves to their own to the tensions in international development. Therefore, it is relations. now time to advance the con• -However, the trend of inde• parts of the world. Regional cept of setting up a new inter• pendence since the last world hegemonists have also fol• national political order. war rolls on irresistably, giv• lowed suit, only to find that To establish a new interna• ing birth to the independence their aggressive wars, like tional political order means of a large number of colonies those initiated by the super• to eliminate hegemonism and and semi-colonies. These na• powers, are destined to fail. power politics from interna• tions have now sprung from In the long course of the tional relations and implement being the ruled and suppressed arms race and foreign expan• the Five Principles of Peaceful to being an independent force sion, the superpowers have Co-existence. that influences and propels the weakened themselves, and The five principles were first development of the world. The their influence on the world introduced jointly by China various small- and medium- has dwindled accordingly. and some of its Asian neigh• sized countries in the world Today, the post-war era, bours in the 1950s as the basic are now all conscious of characterized by a bipolar mil• guidelines in dealing with in• maintaining their sovereignty, itary confrontation, is nearing ternational relations. They struggling for equality and its end, and a hew trend were the product of the bloom• playing a digger role in world of dialogue and detente is ing movement for national in• affairs.' 'Within the military apppearing. There: is also light dependence after World War 4 ('BHU5NG REVIEW, JANUARY 2-8, 1989 EiVENlTS/TRENDS II, and therefore were clearly earmarked as a part of the historical trend towards inde• Sino-lndian Relations pendence. They were proposed in opposition to the old inter• Usher a New Era national political order and he winter wind prevailing past and set their eyes on the served as a foundation for es• T in Beijing recently was future. tablishing a new international warmed by an Indian Gandhi said the differences political order. Ocean current brought by In• between China and India had International practices since dian Prime Minister Rajiv not reduced their common World War II have demon• Gandhi, who told the' Chinese bonds. Both countries have strated that the five principles government and people that waged political struggles to are the best and most durable his government will work hard gain independence, and their tools to use in international re• towards the invprovemnet of economic battles are continu• lations. These principles fair• bilateral relatiqas, and. the re• ing, he said. ly reflect the fundamental in• solution of the;border prob• Deng said that now people terests of countries all over the lem. I are referring to thejiiext centu• world. They apply not only to Gandhi's visit, from Decem• ry as the Asian-Pacific centu• countries with different social ber 19-23, 1988, made him the ry. However, the true Asian- systems but to those with sim• first Indian prime minister to Pacific century will not come ilar systems, too. They can come to China since 1954, unless economic muscle is guarantee that a friendly and when the late Indian leader gained by the developing co-operative relationship will Jawaharlal Nehru visited. The countries, including China be set up among the world's current talks, according to and India, whose combined po• nations and therefore are in Chinese senior leader Deng pulations of 1.8 billion exceed conformity with the world's Xiaoping, marked a genuine one third of the world's total. urgent need for peace and de• improvement of the relation• Gandhi's' first day in Beijing velopment. This being the ship. was basically taken up by talks case, these principles are being The Indian leader also with Chinese Premiet Li Peng. accepted by more and more brought a special New Year's Li pointed out that the boun• countries. The establishment gift to the Beijing Review. At a dary problem is hindering the of a new international politi• press conference on December improvement of bilateral rela• cal order must be based on the 21 in Beijing, Gandhi con• tions. five principles. firmed that, prior to his depar• The Indian prime minister The creation of such a new ture, his government lifted the agreed that the border dispute political order is tied to the 27-year-long ban on the distri• is the biggest thorn vexing movement to institute a new bution of the Beijing Review.